Employee State Insurance (ESI) is regulated by the Employee State Insurance Corporation (ESIC), an independent body created by the law under the Ministry of Labour and Employment, Government of India.
This scheme is started for Indian workers. The employees are given various medical, monetary, and other benefits from the employer. A company employing more than ten employees who have a maximum salary of Rs. 15000/- must register itself with the ESIC.
Under this scheme, the employer needs to contribute 4.00% of the total monthly salary payable to the employee. On the other hand, the employer needs to contribute only 1.00% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is a person whose salary is less than a Hundred Rupees per day.
There are several benefits of registering under this scheme. Some of them are:
1. Sickness benefits
2. Medical Benefits to employees and their family members
3. Maternity Benefit to pregnant women (paid leaves)
4. If the employee's death happens while on work, ESI transfers 90% of the salary to his dependents every month after the employee's death
5. Same as above in case of employee's disability
6. Funeral expenses
7. Old age care medical expenses
The documents required for the registration are –
1. A registration certificate obtained either under the:
a. Factories Act
b. Shops and Establishment Act
2. Certificate of Registration concerning a company, and the Partnership deed in case of a Partnership
3. The Company's Memorandum of Association (MOA) and Articles of Association(AOA)
4. A record of all the employees operating in the Organization
5. PAN Card of the Business Entity along with all the Employees working under the business entity
6. The compensation details of all the employees
7. A canceled cheque of the Bank Account of the Company
8. List of Directors of the Company
9. List of the Shareholders of the Company
10. Register containing the attendance of the employees
After collecting all the necessary documents, the following procedure is followed for the registration of the ESI:
a. Form No – 1 (Employers Registration Form) must be downloaded and should be filled.
b. After downloading the PDF version of the form and filling it, it is necessary to submit it on the website, along with the required documents.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.
